AtriCure Reports First Quarter 2017 Financial Results
-
Worldwide revenue of
$41.3 million – an increase of 14.8% year over year -
U.S. revenue of
$33.3 million – an increase of 17.7% year over year -
International revenue of
$8.0 million – an increase 4.4% year over year
“During the first quarter of 2017, we made significant progress across
our strategic priorities, achieving solid results in our base Open
business while driving forward our transformation into the minimally
invasive market,” said
First Quarter 2017 Financial Results
Revenue for the first quarter of 2017 was
Gross profit for the first quarter of 2017 was
Operating expenses for the first quarter of 2017 increased 12.2%, or
Loss from operations for the first quarter of 2017 was
Full Year 2017 Financial Guidance
The Company reiterates its previously given, full year 2017 financial
outlook. Constant currency revenue growth is expected to be
approximately 13% to 15% over full year 2016, which implies a range of
Adjusted EBITDA, a non-GAAP measure, is projected to be a loss in the
range of $4 million to
Conference Call
About AtriCure
Forward-Looking Statements
This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. We do not undertake to update our forward-looking statements. This document also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements
prepared in accordance with accounting principles generally accepted in
Revenue reported on a constant currency basis is a non-GAAP measure and is calculated by applying previous period foreign currency exchange rates to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and the company’s investors.
Adjusted EBITDA provides an indication of performance excluding certain items. Management believes that in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing operations and management believes that the excluded items are typically not reflective of our ongoing core business operations. Further, management uses adjusted EBITDA for its strategic planning. A reconciliations of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods can be found in a table later in this release.
The non-GAAP financial measures used by
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ATRICURE, INC. AND SUBSIDIARIES |
||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Domestic Revenue: | ||||||||
| Open-heart ablation | $ | 15,705 | $ | 13,968 | ||||
| Minimally invasive ablation | 8,282 | 6,725 | ||||||
| AtriClip | 8,702 | 6,848 | ||||||
| Total ablation and AtriClip | 32,689 | 27,541 | ||||||
| Valve tools | 579 | 731 | ||||||
| Total domestic | 33,268 | 28,272 | ||||||
| International Revenue: | ||||||||
| Open-heart ablation | 4,590 | 4,472 | ||||||
| Minimally invasive ablation | 1,958 | 2,164 | ||||||
| AtriClip | 1,395 | 865 | ||||||
| Total ablation and AtriClip | 7,943 | 7,501 | ||||||
| Valve tools | 62 | 167 | ||||||
| Total international | 8,005 | 7,668 | ||||||
| Total revenue | 41,273 | 35,940 | ||||||
| Cost of revenue | 11,265 | 10,026 | ||||||
| Gross profit | 30,008 | 25,914 | ||||||
| Operating expenses: | ||||||||
| Research and development expenses | 9,550 | 8,563 | ||||||
| Selling, general and administrative expenses | 30,100 | 26,770 | ||||||
| Total operating expenses | 39,650 | 35,333 | ||||||
| Loss from operations | (9,642 | ) | (9,419 | ) | ||||
| Other expense, net | (518 | ) | (300 | ) | ||||
| Loss before income tax expense | (10,160 | ) | (9,719 | ) | ||||
| Income tax expense | 23 | 5 | ||||||
| Net loss | $ | (10,183 | ) | $ | (9,724 | ) | ||
| Basic and diluted net loss per share | $ | (0.32 | ) | $ | (0.31 | ) | ||
|
Weighted average shares used in computing net loss per share: |
||||||||
| Basic and diluted | 32,020 | 31,358 | ||||||
| ATRICURE, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents, and short-term investments | $ | 34,465 | $ | 44,009 | ||||
| Accounts receivable, net | 21,661 | 21,094 | ||||||
| Inventories | 18,838 | 17,660 | ||||||
| Other current assets | 4,145 | 2,954 | ||||||
| Total current assets | 79,109 | 85,717 | ||||||
| Property and equipment, net | 29,930 | 29,995 | ||||||
| Long-term investments | — | 3,000 | ||||||
| Goodwill and intangible assets, net | 157,046 | 157,388 | ||||||
| Other noncurrent assets | 338 | 321 | ||||||
| Total assets | $ | 266,423 | $ | 276,421 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 24,920 | $ | 27,140 | ||||
| Other current liabilities and current maturities of capital leases and long-term debt | 3,489 | 1,688 | ||||||
| Total current liabilities | 28,409 | 28,828 | ||||||
| Capital leases | 13,184 | 13,319 | ||||||
| Long-term debt | 22,154 | 23,886 | ||||||
| Other noncurrent liabilities | 41,818 | 41,946 | ||||||
| Total liabilities | 105,565 | 107,979 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 34 | 33 | ||||||
| Additional paid-in capital | 370,374 | 367,851 | ||||||
| Accumulated other comprehensive loss | (393 | ) | (468 | ) | ||||
| Accumulated deficit | (209,157 | ) | (198,974 | ) | ||||
| Total stockholders' equity | 160,858 | 168,442 | ||||||
| Total liabilities and stockholders' equity | $ | 266,423 | $ | 276,421 | ||||
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ATRICURE, INC. AND SUBSIDIARIES |
||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (10,183 | ) | $ | (9,724 | ) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Share-based compensation expense | 3,628 | 2,842 | ||||||
| Depreciation and amortization of intangible assets | 2,304 | 2,211 | ||||||
| Amortization of deferred financing costs | 66 | 15 | ||||||
| Loss on disposal of equipment | 62 | 141 | ||||||
| Realized loss (gain) from foreign exchange on intercompany transactions | 21 | (5 | ) | |||||
| Amortization/accretion on investments | 38 | 56 | ||||||
| Change in allowance for doubtful accounts | (136 | ) | — | |||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | (397 | ) | 30 | |||||
| Inventories | (1,145 | ) | (1,232 | ) | ||||
| Other current assets | (1,175 | ) | (439 | ) | ||||
| Accounts payable and accrued liabilities | (2,474 | ) | (4,535 | ) | ||||
| Other non-current assets and liabilities | (155 | ) | (291 | ) | ||||
| Net cash used in operating activities | (9,546 | ) | (10,931 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of available-for-sale securities | (3,096 | ) | — | |||||
|
Maturities of available-for-sale securities |
10,550 | 9,800 | ||||||
| Purchases of property and equipment | (1,728 | ) | (2,804 | ) | ||||
| Net cash provided by investing activities | 5,726 | 6,996 | ||||||
| Cash flows from financing activities: | ||||||||
| Payments on capital leases | (120 | ) | (107 | ) | ||||
| Proceeds from stock option exercises | 631 | 1,896 | ||||||
| Shares repurchased for payment of taxes on stock awards | (1,735 | ) | (999 | ) | ||||
| Net cash (used in) provided by financing activities | (1,224 | ) | 790 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (10 | ) | 149 | |||||
| Net decrease in cash and cash equivalents | (5,054 | ) | (2,996 | ) | ||||
| Cash and cash equivalents - beginning of period | 24,208 | 23,764 | ||||||
| Cash and cash equivalents - end of period | $ | 19,154 | $ | 20,768 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for interest | $ | 488 | $ | 244 | ||||
| Cash paid for income taxes | — | — | ||||||
| Noncash investing and financing activities: | ||||||||
| Accrued purchases of property and equipment | 559 | 243 | ||||||
| ATRICURE, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| Reconciliation of Non-GAAP Adjusted Loss (Adjusted EBITDA) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Net loss, as reported | $ | (10,183 | ) | $ | (9,724 | ) | ||
| Income tax expense | 23 | 5 | ||||||
| Other expense, net (a) | 518 | 300 | ||||||
| Depreciation and amortization expense | 2,304 | 2,211 | ||||||
| Share-based compensation expense | 3,628 | 2,842 | ||||||
| Non-GAAP adjusted loss (adjusted EBITDA) | $ | (3,710 | ) | $ | (4,366 | ) | ||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| (a) Other includes: | ||||||||
| Net interest expense | $ | 500 | $ | 220 | ||||
| Loss due to exchange rate fluctuation | 18 | 80 | ||||||
| Other expense, net | $ | 518 | $ | 300 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504006534/en/
Source:
AtriCure, Inc.
Andy Wade, Senior Vice President and Chief Financial
Officer, 513-755-4564
awade@atricure.com
or
Gilmartin
Group
Lynn Pieper Lewis, Investor Relations, 415-937-5402
lynn@gilmartinir.com
